HLTH 1029 - Foundation of Healthcare in Australia
Added on 2020-03-13
3 Pages641 Words160 Views
1Subject: Foundation of Healthcare in AustraliaDear Sir/Madam,BackgroundFountain healthcare in Australia dates back in the 1990’s. It was the rebirth of Formulab Neuronetics and the Giltnet companies that had failed earlier on. It gained tremendous success because of the innovative marketing innovated by Antony Richter who created artificial intelligence in the computer world. The technology boasted a parallel processing in reasoning. The Formulab artificial intelligence enabled human-like feelings, talk, empathy and even provideadvice. The idea was promising and sent the stock prices shooting before the market forces rejected its idea leading to massive loss of the large capital reserve. Academics rejected this idea resulting in a voluntary liquidation in the late 1990's[ CITATION Eva17 \l 1033 ].The ideaThe health care industry offered a potential of considerable economic gains. The industry had high competition. The investor Michael Boyd with his Sonic company took a different path in competition by establishing a group of interlinked firms in which they were the majority shareholders. An establishment of the LifeCare was initiated to deal with paramedics and dental services. The vertical extension advantages were reaped significantly in that dangerous path. Thebest thing was that risks taken by one company did not affect the shareholders of the other organizations with opportunities for intercompany referrals. Boyd’s majority shareholding protected Foundation from hostile takeovers[ CITATION Rob10 \l 1033 ]. Development and success
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